K-Electric awards $84mn EPC contract to Siemens Pakistan

Karachi’s power utility K-Electric has awarded an Engineering, Procurement and Construction (EPC) contract for the construction of 500/220 kV Grid at KANUPP - K-Electric Interconnection (KKI) to Siemens (Pakistan) Engineering Company Limited.

In its notice to the Pakistan Stock Exchange (PSX) on Friday, the Karachi-based electric supply company informed that the estimated value of the EPC contract is around $84 million (Rs15.68 billion).

The construction of the grid station would allow the company to meet the increasing electricity demand of industrial, commercial, and residential sectors across Karachi, the notice added.

“Completion of this project will enable KE to import additional power of up to 800 MW from the national grid from summer 2024,” KE said in its notice.

Last month, KE managed to secure $100 million in financing from Dutch Development Bank FMO to enhance its transmission and distribution network across spanning 6500 km operational territory.

The utility said then it intends to use the funds to extend its infrastructure to previously unserved areas within its operational territory, bringing more residents into its growing customer base of 3.2 million.

Meanwhile, as per the KE’s latest financial statements, the profit of the company witnessed a significant decline of 84% at Rs1,490 million in July-March 2022 over the corresponding period when it clocked in at Rs9,443 million.